Compare The Best Mortgage Lenders For First Time Buyers

Best Bank For Auto Refinance

Hey Sunshine,

Compare these Top 5 Best Mortgage Lenders For First Time Buyers to get information on minimum credit scores required, loan terms, quotes, interest rates, the process of applying, etc. We know finding the best online mortgage lenders for first time buyers can be a difficult challenge, but don’t worry, Mount Shine has brought America’s top 5 best mortgage lenders for first time buyers.

We have compared these 5 mortgage lenders so you can make the right financial decision and get the best deals and lowest closing costs, as swiftly and efficiently as possible. 

If you are looking for the best mortgage lenders in NC for first-time buyers, or in Georgia, or in Texas with bad credit, don’t worry, these mortgage lenders work in all 50 states. They will guide you at every step and provide you with the best deals according to your eligibility. Before we dive in, let us get to know what a mortgage is?

What Is A Mortgage?

A mortgage or mortgage loan is an agreement between the borrower and lender to purchase, buy, or maintain a home, land, or other types of real estate. The borrower can refinance the real estate without having all the cash upfront. The borrower has to make a series of regular payments that are divided into principal and interest to the lender.

To secure the loan, the property acts as a collateral asset.

When a borrower applies for a mortgage, they undergo various underwriting processes, eligibility criteria, minimum credit scores, and down payments before closing the deal. Now you know What Is A Mortgage? Let us find out who are the best mortgage lenders for first time buyers in the United States?

Top 5 Best Mortgage Lenders For First Time Buyers

Mount Shine’s expert team has compiled a list of the top 5 best mortgage lenders for first-time buyers that excel in various areas, such as offering low down-payment mortgages or specialty loans for first-time borrowers. This way, you can quickly decide which one to choose and make the right financial decision.

The best mortgage lenders for first-time homebuyers are:

  1. Quicken Loans
  2. NBKC
  3. NASB (North American Savings bank)
  4. Ally Bank
  5. Bank Of American

1. Quicken Loans Mortgage Lenders

Quicken Loans is one of the trusted and one of the best mortgage lenders for first-time buyers where the minimum down payment required is 3%. They require a minimum credit score of 620 to proceed with the mortgage application process.

Quicken Loans Mortgage Lenders

It is good for borrowers who prefer online processing and assistance with the loan officer over the phone. Quicken Loans are now subsumed under the Rocket Mortgage brand, so borrowers who start out with Quicken will end up with a home loan from Rocket. 

Now let us find out the pros and cons of Quicken Loan Mortgage Lenders.

Pros

  • It caters to self-service users who want to apply for a home loan online and talk to a human only as necessary.
  • It’s fast and within a few minutes will give you an estimate of the loan amount you’ll qualify for.
  • It streamlines the online process with document and asset retrieval capabilities, including the ability to edit your preapproval letter.

Cons

  • Getting a customised interest rate requires a credit check, which can affect your credit score.
  • It doesn’t offer home equity loans or lines of credit.
  • According to the latest data, lender fees are on the high side, and the fees aren’t offset by particularly low mortgage rates.

2. NBKC Bank Mortgage Lenders

NBKC Bank requires a minimum down payment of 3% and a minimum credit score of 620 to proceed with the mortgage application process.

NBKC Bank Mortgage Lenders

Borrowers with a good credit score should opt for NBKC mortgage lenders as they offer low mortgage rates online. Previous customers have reported good online experience and telephone support. In NBKC’s mortgages, VA loans, or Veterans Affairs loans, hold the large share. Construction loans and home equity lines of credit are limited to the Kansas City area.

Now let us find the pros and cons of the NBKC Mortgage Lenders:

Pros

  • It offers low rates compared with other lenders, according to the latest data.
  • It extends full online capabilities, from application to loan tracking.
  • It displays customized rates, with fee estimates, without requiring contact information.

Cons

  • Equity lines and construction loans are available only in the Kansas City metro area.
  • It doesn’t offer renovation loans.

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3. NASB or North American Savings bank Mortgage Lenders

NASB requires a minimum down payment of 3% and a minimum credit score of 620 to proceed with the mortgage application process.

NASB Bank Mortgage Lenders

NASB is a national bank and mortgage lender located in Missouri that offers a wide range of mortgage offers to borrowers with less-than-perfect credit or nontraditional income sources. A large share is made up of active military members and veterans’ loans at NASB mortgage lenders. So, if you are a member of the United States military, NASB mortgage lenders is the bank for you. They do have a wide range of options for other borrowers too.

Now let us find out the pros and cons of the NASB mortgage lenders:

Pros

  • It dedicates much of its business to serving military families with VA loans.
  • consider nontraditional income sources, in some cases.
  • offers competitive rates and origination fees.

Cons

  • It does not offer home improvement mortgages.
  • It doesn’t offer home equity loans and lines of credit.

4. Ally Bank Mortgage Lenders 

First buyers applying at Ally Bank Mortgage Lender require a minimum down payment of 3% with a minimum credit score of 620 to proceed with the mortgage application process.

Ally Bank Mortgage Lenders

They have a wide range of online tools for home buyers which support them while financing mortgages. Ally Bank mortgage lenders serve all 50 states and are ideal for first-time home buyers, mortgage refinancers, and jumbo borrowers. They provide an excellent digital experience with dedicated customer service. You can get help from a loan officer, but the digital platform is so comprehensive that it is rarely necessary. The process of applying for a mortgage at Ally Bank is simple, fast, and reliable, which makes the whole experience very good.

Now let us find out the pros and cons of the Ally Bank mortgage lenders:

Pros

  • Excels in online convenience, with document upload, loan tracking, and e-signatures.
  • It offers good rate transparency; rate shoppers can see customized interest rates.

Cons

  • There is a limited selection of loan products available, including FHA, VA, and USDA loans.
  • It doesn’t offer home equity loans and lines of credit.

5. Bank Of America Mortgage Lenders

Bank of America requires a minimum down payment of 5% and a minimum credit score of 620 to proceed with the mortgage application process. It is a reputed bank that has a wide range of solutions for every borrower and is the best mortgage lender for first time buyers.

Bank of America Mortgage Lenders

If you google “best mortgage lenders for first time buyers near me”, we are pretty sure Bank of America’s name will definitely come up.

Bank of America is a major bank lender, having 5,000 branch locations in the United States. So if you are looking for the best mortgage lenders in NC for first-time buyers, or in Georgia, or in Texas with bad credit or fair-credit, there will be no problems with customer support.

The bank offers mortgage and refinance loan products, along with full banking services where first time home buyers can look for low-down-payment options and existing customers may get a discount on fees. Its online mortgage options, which include the Bank of America Digital Mortgage Experience, Thus, giving a phenomenal customer experience where they can apply for online applications, electronic signatures for documents, and online rate locks. Borrowers can also connect with a lending specialist online hassle free.

Now let us find out the pros and cons of the Bank of America:

Pros

  • offers down payment and closing cost assistance programs.
  • may give existing customers a discount on mortgage lender origination fees.
  • offers a home equity line of credit, or HELOC.

Cons

  • It doesn’t offer renovation loans that roll costs into a mortgage.

Conclusion

In the United States, there are a lot of options when it comes to finding the best mortgage lenders for first time buyers but choosing one is a difficult one. That’s why Mount Shine has chosen these top 5 lists of mortgage lenders on which you can rely. Get to know their online processes, refinancing options for borrowers with poor or fair credit scores. There might be some lenders which will be having an option to provide joint auto loans along with the mortgage. This gives you an advantage as you don’t have to go anywhere else.

Best Mortgage Lenders for First-Time Home Buyers Recap

Quicken Loans: Best for online experience

NBKC: Best for online experience

NASB: Best for first-time homebuyers overall

Ally Bank: Best for conventional loans

Bank of America: Best for assistance programs

Current mortgage and refinance rates

Current Mortgage and Refinance Rates

ProductInterest rateAPR
30-year fixed-rate2.97%3.04%
20-year fixed-rate2.76%2.86%
15-year fixed-rate2.21%2.34%
10-year fixed-rate2.11%2.24%
7/1 ARM2.61%2.91%
5/1 ARM2.52%2.81%
3/1 ARM2.92%3.56%
30-year fixed-rate FHA2.25%2.90%
30-year fixed-rate VA2.44%2.63%

Comparing Best Mortgage Lenders for First-Time Home Buyers

Comparing Best Mortgage Lenders for First-Time Home Buyers

LenderMount Shine RatingMin. Credit ScoreMin. Down Payment
Quicken Loans4.0/5
Best for online experience
6203%
NBKC5.0/5
Best for online experience
6203%
NASB5.0/5
Best for first-time home buyers overall
6203%
Ally Bank4.5/5
Best for conventional loans
6203%
Bank of America4.5/5
Best for assistance programs
6205%

How To Apply To Mortgage Lenders For First Time Buyers?

Each bank has its own process for applying for a mortgage, whether it is a new mortgage loan or a refinance. We at Mount Shine have simplified the process by bringing you the best mortgage lenders for first-time buyers. Check out the list, online details, and get free reports of your credit score, eligibility for a mortgage, and quotes by contacting us. Our service is free, fast, and simple, so get started today!

FAQs

Q1. What are today’s mortgage rates?

Q2. How do I compare current mortgage rates?

Q3. How do I choose a mortgage lender?

Q4. What type of loan is best for a first-time home buyer?

Q5. What programs are available for first-time home buyers?

Q6. What is the easiest home loan for a first-time home buyer to get?

Q7. What should I know before meeting a mortgage lender?

Q8. What are good questions to ask a lender?

Q9. Are tax returns needed for mortgage?

Q10. Can you buy a house with no job?

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